Indicate by check mark whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes
þ
No
o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer
o

Accelerated filer
o

Non-accelerated filer
þ
(Do not check if a smaller reporting company)

Smaller reporting company
o

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Act). Yes
þ
No
o

As of November 14, 2008, there were 48,500,000 shares of the registrants common stock
outstanding.

GHL Acquisition Corp. (the Company), a blank check company, was incorporated in Delaware on
November 2, 2007 for the purpose of effecting a merger, capital stock exchange, asset acquisition,
stock purchase, reorganization or other similar business combination with one or more businesses or
assets (Business Combination). The Company is considered in the development stage and is subject
to the risks associated with development stage companies. The Company has selected December 31 as
its fiscal year-end.

At September 30, 2008, the Company had not yet commenced any operations. All activity through
September 30, 2008 relates to the Companys formation, initial public offering (the Public
Offering) and efforts to identify prospective target businesses as described in Note 3.

The registration statement for the Public Offering was declared effective February 14, 2008.
The Company consummated the Public Offering on February 21, 2008 and received gross proceeds of
approximately $408,000,000, consisting of $400,000,000 from the Public Offering and $8,000,000 from
the sale of the private placement warrants to the Companys founder, Greenhill & Co., Inc. (the
Founder). Upon the closing of the Public Offering, the Company paid $6,900,000 of underwriting
fees and placed $400,000,000 of the total proceeds into a trust account (Trust Account). The
remaining approximately $1,100,000 was used to pay offering costs. The Companys management has
broad discretion with respect to the specific application of the net proceeds of the Public
Offering, although substantially all of the net proceeds of the Public Offering are intended to be
generally applied toward consummating a Business Combination. Up to $5,000,000 of interest, subject
to adjustment, earned on the Trust Account balance may be released to the Company to fund working
capital requirements and additional interest earnings may be released to fund income tax
obligations. As used herein, Target Business shall mean one or more businesses that at the time
of the Companys initial Business Combination has a fair market value of at least 80% of the
Companys net assets (which includes all of the Companys assets, including the funds held in the
Trust Account, less the Companys liabilities (excluding deferred underwriting discounts and
commissions of $11,288,137). There is no assurance that the Company will be able to successfully
effect a Business Combination.

The Companys efforts in identifying prospective target businesses were not limited to a
particular industry. Instead, the Companys intent was to focus on various industries and target
businesses in the United States and Europe that may provide significant opportunities for growth.

The $400,000,000 in the Trust Account is invested in assets which all meet the conditions
under Rule 2a-7 promulgated under the Investment Company Act of 1940. The placing of funds in the
Trust Account may not protect those funds from third party claims against the Company. Although the
Company will seek to have all vendors (other than its independent auditors), prospective target
businesses and other entities it engages, execute agreements with the Company waiving any right,
title, interest or claim of any kind in or to any monies held in the Trust Account, there is no
guarantee that they will execute such agreements. The Founder has agreed that it will be liable
under certain circumstances to ensure that the proceeds in the Trust Account are not reduced by the
claims of target businesses or vendors, service providers or other entities that are owed money by
the Company for services rendered to or contracted for or products sold to the Company. There can
be no assurance that it will be able to satisfy those obligations.

The Company, after signing a definitive agreement for a Business Combination, is required to
submit such transaction for stockholder approval. In the event that (i) a majority of the
outstanding shares of common stock sold in the Public Offering that vote in connection with a
Business Combination vote against the Business Combination or the proposal to amend the Companys
amended and restated certificate of incorporation to provide for its perpetual existence or (ii)
public stockholders owning 30% or more of the shares sold in the Public Offering vote against the
Business Combination and exercise their conversion rights described below, the Business Combination
will not be consummated. The Companys stockholders prior to the Public Offering (Insiders)
agreed to vote their 8,500,000 Founders shares of common stock in accordance with the vote of the
majority of the shares voted by all the holders of the shares sold in the Public Offering (Public
Stockholders) with respect to any Business Combination and related amendment to the Companys
amended and restated certificate of incorporation to provide for the Companys perpetual existence.
Moreover, the Companys stockholders prior to the Public Offering and the Companys officers and
directors agreed to vote any shares of common stock acquired in, or after, the Public Offering in
favor of the Business Combination and related amendment to the Companys amended and restated
certificate of incorporation to provide for the Companys perpetual existence. After consummation
of a Business Combination, these voting provisions will no longer be applicable.

7

With respect to a Business Combination which is approved and consummated, any Public
Stockholder who votes against the Business Combination may demand that the Company convert his or
her shares into cash. The per share conversion price will equal the amount in the Trust Account,
calculated as of two business days prior to the consummation of the proposed Business Combination,
inclusive of any interest, net of any taxes due on such interest and net of franchise taxes, and
net of up to $5.0 million in interest income on the Trust Account balance previously released to us
to fund working capital requirements, divided by the number of shares of common stock held by
Public Stockholders at the consummation of the Public Offering. The Company will proceed with the
Business Combination if Public Stockholders owning no more than 30% (minus one share) of the shares
sold in the Public Offering both vote against the Business Combination and exercise their
conversion rights. Accordingly, Public Stockholders holding 11,999,999 shares sold in the Public
Offering may seek conversion of their shares in the event of a Business Combination. Such Public
Stockholders are entitled to receive their per share interest in the Trust Account computed without
regard to the shares of common stock held by the Companys stockholders prior to the consummation
of the initial Public Offering.

The Companys amended and restated certificate of incorporation provides that the Company will
continue in existence only until February 14, 2010. If the Company has not completed a Business
Combination by such date, its corporate existence will cease and it will liquidate. In the event of
liquidation, it is possible that the per share value of the residual assets remaining available for
distribution (including Trust Account assets) will be less than the initial public offering price
per share in the Public Offering (assuming no value is attributed to the Warrants contained in the
units to be offered in the Public Offering discussed in Note 3).

The unaudited financial statements included herein have been prepared from the books and
records of the Company pursuant to the rules and regulations of the SEC for reporting on Form 10-Q.
The information and note disclosures normally included in complete financial statements prepared in
accordance with generally accepted accounting principles in the United States (GAAP) have been
condensed or omitted pursuant to such rules and regulations. The interim financial statements
should be read in conjunction with the audited financial statements and notes thereto included in
the Companys Annual Report on Form 10-K for the year ended December 31, 2007.

The Companys management is responsible for the financial statements included in this
document. The Companys interim financial statements are unaudited. Interim results may not be
indicative of the results that may be expected for the year. However, the Company believes all
adjustments considered necessary for a fair presentation of these interim financial statements have
been included and are of a normal and recurring nature.

Note 2  Summary of Significant Accounting Policies

Cash and Cash Equivalents
 The Company considers all highly liquid investments with
maturities of three months or less at the date of purchase to be cash equivalents.

Concentration of Credit Risk
 The Company maintains its cash and cash equivalents with a
financial institution with high credit ratings. At times, the Company may maintain deposits in
federally insured financial institutions in excess of federally insured (FDIC) limits. However,
management believes that the Company is not exposed to significant credit risk due to the financial
position of the depository institution in which those deposits are held. The Company does not
believe the cash equivalents held in trust at broker are subject to significant credit risk as the
portfolio is invested in assets, which meet the applicable conditions of 2a-7 of the Investment
Company Act of 1940. The Company has not experienced any losses on this account.

Fair Value of Financial Instruments
 Cash and cash equivalents, investments held in trust at
broker and notes payable are carried at cost, which approximates fair value due to the short-term
nature of these investments.

Use of Estimates
 The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of income and expenses during the reporting period. Actual results could differ materially from
those estimates.

Earnings per Share

The Company calculates earnings per share (EPS) in accordance with
FASB Statement No. 128, Earnings per Share (SFAS 128). Basic and diluted EPS is calculated by
dividing net income by the weighted-average number of shares of common stock outstanding during the
period.

8

Warrants issued by the Company in the Public Offering and private placement are contingently
exercisable at the later of one year from the date of the offering and the consummation of a
business combination, provided, in each case, there is an effective registration statement covering
the shares issuable upon exercise of the warrants. Hence, these are presented in the proforma
diluted EPS.

Proforma diluted EPS includes the determinants of basic and diluted EPS plus to the extent
dilutive, the incremental number of shares of common stock to settle outstanding common stock
purchase warrants, as calculated using the treasury stock method.

Income Taxes
 The Company complies with the Financial Accounting Standards Board (FASB)
issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation
of FASB Statement No. 109 (FIN 48), which provides criteria for the recognition, measurement,
presentation and disclosure of uncertain tax position. A tax benefit from an uncertain position may
be recognized only if it is more likely than not that the position is sustainable based on its
technical merits. The Company filed its first income tax return on September 15, 2008. Management
does not plan on taking any uncertain tax positions when filing the Companys tax returns
consequently the Company has not recognized any liabilities under FIN 48. The Company will
recognize interest expense and penalties related to uncertain tax positions as an operating expense
in its condensed statements of income.

Deferred income taxes are provided for the differences between bases of assets and liabilities
for financial reporting and income tax purposes. A valuation allowance is established when
necessary to reduce deferred tax assets to the amount expected to be realized.

The Company recorded a deferred income tax asset for the tax effect of temporary differences
aggregating $135,186 at September 30, 2008. The Company has not provided a valuation allowance at
September 30, 2008, since the Company is negotiating a proposed Business Combination as disclosed
in Note 8. At December 31, 2007, the deferred income tax asset for the tax effect of temporary
differences amounted to $433. In recognition of the uncertainty regarding the ultimate amount of
income tax benefits to be derived, the Company has recorded a full valuation allowance at December
31, 2007.

The effective tax rate differs from the statutory rate of 34% due to the provision for state
and local taxes and the establishment of the valuation allowance.

Requires consideration of the Companys creditworthiness when valuing liabilities; and



Expands disclosures about instruments measured at fair value.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset
or liability as of the measurement date. A financial instruments categorization within the
valuation hierarchy is based upon the lowest level of input that is significant to the fair value
measurement. The three levels of the valuation hierarchy and the distribution of the Companys
financial assets within it are as follows:



Level 1  inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets.



Level 2  inputs to the valuation methodology include quoted prices for similar assets
and liabilities in active markets, and inputs that are observable for the assets or
liability, either directly or indirectly, for substantially the full term of the financial
instrument.



Level 3  inputs to the valuation methodology are unobservable and significant to the
fair value measurement.

9

The Companys assets carried at fair value on a recurring basis are its investments in money
market securities under the caption Investments held in trust at broker. The securities have been
classified within level 1, as their valuation is based on quoted prices for identical assets in
active markets.

The estimated fair value at September 30, 2008 including accrued interest is as follows:

Balance

as of September 30,

Level 1

Level 2

Level 3

2008

Investments

$

402,270,297

$



$



$

402,270,297

Total investments

$

402,270,297

$



$



$

402,270,297

In February 2007, the FASB issued SFAS No. 159, Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement No. 115 (SFAS 159). SFAS 159
permits an entity to elect fair value as the initial and subsequent measurement attribute for many
financial assets and liabilities. Entities electing the fair value option would be required to
recognize changes in fair value in earnings. Entities electing the fair value option would be
required to distinguish, on the face of the balance sheet, the fair value of assets and liabilities
for which the fair value option has been elected and similar assets and liabilities measured using
another measurement attribute. SFAS 159 became effective beginning January 1, 2008. The Company
elected not to measure any eligible items using the fair value option in accordance with SFAS No.
159 and therefore, SFAS No. 159 did not have an impact on the Companys condensed balance sheets,
condensed statements of income and condensed statements of cash flows.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (SFAS
141R). SFAS 141R provides revised guidance on how acquirers recognize and measure the
consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling
interests, and goodwill acquired in a business combination. SFAS 141R also expands required
disclosures surrounding the nature of financial effects of business combinations. SFAS 141R is
effective, on a prospective basis, for companies for fiscal years beginning January 1, 2009. The
Company is currently assessing the potential effect of SFAS 141R on its balance sheets, condensed
statements of income and condensed statements of cash flows.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements (SFAS 160). SFAS 160 establishes requirements for ownership interests in
subsidiaries held by parties other than the Company (sometimes called minority interests) be
clearly identified, presented, and disclosed in the condensed balance sheet within equity, but
separate from the parents equity. All changes in the parents ownership interests are required to
be accounted for consistently as equity transactions and any noncontrolling equity investments in
deconsolidated subsidiaries must be measured initially at fair value. SFAS 160 is effective, on a
prospective basis, for companies for fiscal years beginning January 2009. However, presentation and
disclosure requirements must be retrospectively applied to comparative financial statements. The
Company is currently assessing the impact of SFAS 160 on its condensed balance sheets and condensed
statements of income.

In April 2008, the FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible
Assets (FSP FAS 142-3). FSP FAS 142-3 amends the factors that should be considered in developing
a renewal or extension assumptions used for purposes of determining the useful life of a recognized
intangible asset under SFAS No. 142, Goodwill and Other
Intangible Assets (SFAS 142). FSP FAS
142-3 is intended to improve the consistency between the useful life of a recognized intangible
asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the
asset under SFAS 141R and other U.S. generally accepted accounting principles. FSP FAS 142-3 is
effective for fiscal years beginning after December 15, 2008. Earlier application is not permitted.
The Company will be assessing the potential effect of FSP FAS 142-3 if applicable, once we enter
into a business combination.

In October, 2008, the FASB issued FSP FAS 157-3, Determining the Fair Value of a Financial
Asset When the Market for That Asset Is Not Active (FSP FAS 157-3) which provided additional
interpretative guidance on the application of SFAS No. 157 in markets that are not active and
provided an illustrative example to demonstrate how the fair value of a financial asset is
determined when the market for the financial asset is inactive. FSP FAS 157-3 was effective upon
issuance, including for prior periods for which financial statements have not yet been issued. The
issuance of interpretative guidance on the application of SFAS No. 157 did not have a material
impact on the Companys condensed financial statements.

10

Note 3  Public Offering

Pursuant to a Registration Statement on Form S-1 declared effective by the Securities and
Exchange Commission on February 14, 2008, for an offering consummated on February 21, 2008 (the
Registration Statement), the Company sold in its Public Offering 40,000,000 units at a price of
$10.00 per unit. Each unit (a Unit) consists of one share of the Companys common stock, $0.001
par value, and one Redeemable Common Stock Purchase Warrant (a Warrant). Each Warrant will
entitle the holder to purchase from the Company one share of common stock at an exercise price of
$7.00 commencing on the later of the completion of a Business Combination or 12 months from the
effective date of the Public Offering and expiring five years from the effective date of the Public
Offering or earlier upon redemption or liquidation of the Trust Account. The Company may redeem all
of the Warrants, at a price of $.01 per Warrant upon 30 days prior notice while the Warrants are
exercisable, and there is an effective registration statement covering the common stock issuable
upon exercise of the Warrants current and available, only if the last sales price of the common
stock is at least $14.25 per share for any 20 trading days within a 30 trading day period ending on
the third day prior to the date on which notice of redemption is given. The Company will not redeem
the Warrants unless an effective registration statement covering the shares of common stock
issuable upon exercise of the Warrants is current and available throughout the 30-day redemption
period. If the Company calls the Warrants for redemption as described above, the Companys
management will have the option to adopt a plan of recapitalization pursuant to which all holders
that wish to exercise Warrants would be required to do so on a cashless basis. In such event,
each exercising holder would surrender the Warrants for that number of shares of common stock equal
to the quotient obtained by dividing (i) the product of the number of shares of common stock
underlying the Warrants, multiplied by the difference between the exercise price of the Warrants
and the fair market value (defined below) by (ii) the fair market value. The fair market value
means the average reported last sales price of the Companys common stock for the 10 trading days
ending on the third trading day prior to the date on which the notice of redemption is sent to the
holders of Warrants. In accordance with the Warrant Agreement relating to the Warrants sold and
issued in the Public Offering, the Company will only be required to use its best efforts to
maintain the effectiveness of the registration statement covering the common stock issuable upon
exercise of the Warrants. The Company will not be obligated to deliver securities, and there are no
contractual penalties for failure to deliver securities, if a registration statement is not
effective at the time of exercise. Additionally, if a registration statement is not effective at
the time of exercise, the holder of such Warrant shall not be entitled to exercise such Warrant and
in no event (whether in the case of a registration statement not being effective or otherwise) will
the Company be required to net cash settle the Warrant exercise. Consequently, the Warrants may
expire unexercised and unredeemed. The number of Warrant shares issuable upon the exercise of each
Warrant is subject to adjustment from time to time upon the occurrence of the events enumerated in
the Warrant Agreement.

The Warrants are classified within stockholders equity since, under the terms of the
Warrants, the Company cannot be required to settle or redeem them for cash.

Total underwriting fees related to the Public Offering aggregate to $23,251,500. The Company
paid $6,900,000 upon closing of the Public Offering and $16,351,500 is payable only upon the
consummation of a Business Combination. Specifically, Banc of America Securities LLC and other
underwriters have agreed that approximately 70% of the underwriting discounts will not be payable
unless and until the Company completes a Business Combination and has waived its right to receive
such payment upon the Companys liquidation if it is unable to complete a Business Combination. The
deferred underwriting commission paid will be less pro-rata reductions resulting from the exercise
of the stockholder conversion rights as described in the Registration Statement. Accordingly, the
liability for deferred underwriting commission excludes $5,063,363, which is included in the
liability for common stock subject to possible conversion.

The Company also granted Banc of America Securities LLC and other underwriters a 30-day
over-allotment option to purchase up to 6,000,000 Units, which expired on March 27, 2008. Following
the expiration of the over-allotment option, the Companys initial stockholders returned at no
cost, 1,275,000 of Units pursuant to the terms of the applicable purchase agreement in order for
the Founders to maintain its approximately 17.3% ownership interest in our common stock after
giving effect to the Public Offering.

On September 30, 2008, $402,270,297 was held in trust, of which the Company had the right to
withdraw $2,270,297 to fund working capital needs and the payment of income taxes. The Company also
had $489,843 of unrestricted cash available.

11

Note 4  Note Payable

On November 19, 2007, the Company issued a promissory note in the aggregate principal amount
of $250,000 to the Founder. The note accrued interest at the rate of 8.5% per annum, was unsecured
and the principal was due at the earlier of (i) December 30, 2008, or (ii) the consummation of the
offering. On February 26, 2008, the Company paid off the principal amount of the promissory note
including accrued interest in the amount of $5,844, for a total of $255,844.

Note 5  Related Party Transactions and Commitments

The Company presently occupies office space provided by the Founder. The Founder has agreed
that, until the Company consummates a Business Combination, it will make such office space, as well
as certain office and secretarial services, available to the Company, as may be required by the
Company from time to time. The Company has agreed to pay the Founder a total of $10,000 per month
for such services commencing on the effective date of the Public Offering and will terminate upon
the earlier of (i) the consummation of a Business Combination, or (ii) the liquidation of the
Company. The Company paid a total of $30,000 with respect to this commitment for the three months
ended September 30, 2008 and $75,172 for the nine months ended September 30, 2008.

From time to time, the Founder funds administrative expenses, such as travel expenses, meals
and entertainment and office supplies, incurred in the ordinary course of business. Such expenses
are to be reimbursed by the Company to the Founder. As of September 30, 2008, the Founder has
funded a total of $15,940 of administrative expenses, of which $6,334 was paid off to the Founder
on September 29, 2008. The remaining balance of $9,606 will be reimbursed to the Founder in the
future period and is included within Accrued Expenses in the accompanying Balance Sheet.

On January 10, 2008, the Company cancelled 1,725,000 Founders Units, which were surrendered
in a recapitalization, leaving the Founder with a total of 9,775,000 Units as of the date of the
Public Offering. Of the 9,775,000 Founders Units, an aggregate of 1,275,000 Founders Units,
including the common stock included therein, were forfeited on March 27, 2008, following the
expiration of the over-allotment option of Banc of America Securities LLC and the other
underwriters pursuant to the terms of the applicable purchase agreement.

On February 1, 2008, the Founder transferred at cost an aggregate of 150,000 of the Founders
Units to certain of the Companys directors (together with the Founder, the Initial
Stockholders). These transferred Units have the same terms and are subject to the same
restrictions on transfers as the Founders Units. The restrictions on transfer on these Units will
lapse 180 days after the consummation of a Business Combination by the Company (if any) (considered
a performance condition). In accordance with the Statement of Financial Accounting Standards No.
123 (Revised 2004) Share Based Payments, the restrictions are not being taken into account for
purposes of determining the value of the transferred Units and the Company will record a
compensation charge and a related capital contribution (at the time a Business Combination is
consummated) for the difference between the consideration received by the Founder in the transfer
and the price of $10.00 per Unit paid by the public stockholders which acquired Units in our
initial public offering.

On February 21, 2008, in connection with the Public Offering, the Founder purchased a total of
8,000,000 Warrants (Private Placement Warrants) at $1.00 per Warrant (for an aggregate purchase
price of $8,000,000) privately from the Company. All of the proceeds received from the purchase
were placed in the Trust Account. The Private Placement Warrants are identical to those included in
the Units sold in our initial public offering, except that:



the Private Placement Warrants, including the common stock issuable upon exercise of
these Warrants, are subject to certain transfer restrictions;



the Private Placement Warrants will not be redeemable by the Company so long as they are
held by the Initial Stockholders or their permitted transferees; and



the Private Placement Warrants may be exercised by the Initial Stockholders or their
permitted transferees on a cashless basis.

As of September 30, 2008, the Founder owns approximately 17.3% of the Companys issued and
outstanding common stock and collectively, the Initial Stockholders own approximately 17.5%.

12

Note 6  Income Taxes

The components of the provision for income taxes for the three and nine months ended September
30, 2008 are set forth below:

Three Months

Nine Months

Ended

Ended

September 30,

September 30,

2008

2008

Current taxes:

U.S. federal

$

550,210

$

1,397,785

State and local

324,810

825,164

Total current tax expense

$

875,020

$

2,222,949

Deferred taxes:

U.S. federal

$

(85,005

)

$

(85,005

)

State and local

(50,181

)

(50,181

)

Total deferred tax expense

(135,186

)

(135,186

)

Total provision for income taxes

$

739,834

$

2,087,763

A reconciliation of the statutory U.S. federal income tax rate of 34% to the Companys
effective income tax rate is set forth below:

Three Months

Nine Months

Ended

Ended

September 30,

September 30,

2008

2008

U.S. statutory tax rate

34.0

%

34.0

%

Increase related to state and local taxes, net of U.S. income tax

10.0

%

11.0

%

Reversal of valuation allowance

(4.0

)%



Effective income tax rate

40.0

%

45.0

%

Note 7  Earnings per Share

The computations of basic, diluted, and proforma diluted earnings per share are set forth
below:

Three Months

Nine Months

Ended

Ended

September 30,

September 30,

2008

2008

Numerator for basic and diluted
earnings per share  net income
available to common stockholders

$

1,097,043

$

2,548,339

Denominator for basic and diluted
earnings per share  weighted
average number of common shares

48,500,000

41,511,588

Proforma Adjustments:

Add  dilutive effect of Warrants:

14,018,797

11,562,910

Denominator for proforma diluted
earnings per share  adjusted
weighted average number of common
shares and assumed potential
conversion

62,518,797

53,074,498

Earnings per share:

Basic and diluted

$

0.02

$

0.06

Proforma earnings per share  diluted

$

0.02

$

0.05

Note 8  Proposed Business Combination

On September 22, 2008, the Company announced that it had entered in an agreement (the
Transaction Agreement) to acquire Iridium Holdings LLC (Iridium), a leading provider of voice
and data mobile satellite services (the Proposed Business Combination).

Under the terms of the Transaction Agreement, the Company will acquire Iridium in exchange for
36.0 million shares of its common stock and $77.1 million of cash, subject to adjustment. In
addition, 90 days following the closing of the Proposed Business
Combination, if Iridium has in effect a valid
election under Section 754 of the Internal Revenue Code of 1986, as amended, the Company will make
a tax benefits payment of up to $30 million in aggregate to certain sellers to compensate for the
tax basis step-up. Upon the closing of

13

the
Proposed Business Combination, Iridium will become a subsidiary of the Company and the combined enterprise
will be renamed Iridium Communications Inc. and will apply for listing on NASDAQ.

The Transaction Agreement and related documents have been unanimously approved by the board of
directors of the Company and Iridium. The closing of the Proposed Business Combination is subject to customary
closing conditions including the expiration or termination of waiting periods under the
Hart-Scott-Rodino Act, Federal Communications Commission approval, other regulatory approvals and
the approval of the Companys stockholders, including a majority of the shares of the Companys
common stock issued in its Public Offering. The Company has been granted early termination
of the Hart-Scott-Rodino Act. In addition, the closing of the Proposed Business Combination is conditioned on the
requirement that stockholders owning not more than 11,999,999 shares of the Companys common stock
(such number representing 30 percent minus one share of the 40,000,000 shares of issued in its
Public Offering) vote against the Proposed Business Combination and validly exercise their conversion rights
to have their shares converted into cash, as permitted by the Companys certificate of
incorporation. The Companys initial stockholders have agreed to vote the 8,500,000 shares they
already own, which were issued to them prior to the Companys
Public Offering, in
accordance with the vote of the holders of a majority of the shares
issued in the Public
Offering. The Proposed Business Combination is expected to close in the first part of 2009 but may vary depending
upon the timing of regulatory approvals.

If (x) the Transaction Agreement is terminated either by the Company or Iridium because the
Companys stockholders shall have failed to approve the Proposed Business Combination, (y) the Company breaches its
obligations to hold a stockholder meeting or to use its reasonable
best efforts to consummate the Proposed Business Combination contemplated by the Transaction Agreement, and (z) the
Company consummates an initial business combination (other than with Iridium), the Company will be
obligated to pay to Iridium within two business days of the consummation of such other business
combination, a break-up fee consisting of $5,000,000 in cash, shares of the Companys common stock
or combination thereof, at the Companys election (the Termination Fee). The Termination Fee will
be the exclusive remedy of Iridium, the Sellers and their respective affiliates with respect to any
such breach except in the case where, prior to 10 business days immediately following the
termination of the Transaction Agreement, Iridium notifies the Company in writing that it believes
in good faith the Company has committed willful breach of the Transaction Agreement. In that case,
the Company need not pay the Termination Fee and Iridium shall have the right to pursue its
remedies for willful breach against the Company, subject to other limitations set forth in the
Transaction Agreement.

The Company intends to launch a tender offer for its common shares which will close concurrent
with completion of the Proposed Business Combination, pursuant to which shares will be acquired at a price per share
of $10.50, up to an aggregate purchase price of $120 million reduced by the amount of cash
distributed to stockholders who vote against the Proposed Business Combination and elect conversion of their shares.

On September 22, 2008, the Company entered into a side letter agreement (the Side Letter)
with the Founder whereby the Founder has agreed to forfeit at the closing of
the Proposed Business Combination the following securities of the Company which it currently owns: (1) 1,441,176
common shares; (2) 8,369,563 founder warrants; and (3) 2,000,000 private placement warrants. These
forfeitures will reduce the Companys shares and warrants outstanding immediately post-closing.

Note 9  Deferred Acquisition Costs

The Company has incurred certain transaction costs for the Proposed Business Combination as
disclosed in Note 8. The Company has deferred such costs under SFAS 141 (Business Combinations).
It is probable that the Proposed Business Combination will close after the effective date of SFAS
141R and under SFAS 141R such acquisition costs will be expensed.

14

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

In this Managements Discussion and Analysis of Financial Condition and Results of Operations,
we, our, firm and us refer to GHL Acquisition Corp. References to Greenhill refer to
Greenhill & Co., Inc., our founding stockholder. References to initial stockholders refer to
Greenhill and its permitted transferees. References to public stockholders refers to purchasers
of shares of our common stock in our initial public offering or in the secondary market, including
our founding stockholder, officers or directors and their affiliates to the extent they purchased
or acquired shares in the initial public offering or in the secondary market.

Cautionary Statement Concerning Forward-Looking Statements

The following discussion should be read in conjunction with our condensed consolidated
financial statements and the related notes that appear elsewhere in this report. We have made
statements in this discussion that are forward-looking statements. In some cases, you can identify
these statements by forward-looking words such as may, might, will, should, expect,
plan, anticipate, believe, estimate, predict, potential or continue, the negative of
these terms and other comparable terminology. These forward-looking statements, which are subject
to risks, uncertainties and assumptions about us, may include projections of our future financial
performance, based on our growth strategies and anticipated trends in our business. These
statements are only predictions based on our current expectations and projections about future
events. There are important factors that could cause our actual results, level of activity,
performance or achievements to differ materially from the results, level of activity, performance
or achievements expressed or implied by the forward-looking statements. These factors include, but
are not limited to, those discussed in our Report on
Form 10-K
under the caption Risk Factors.

Although we believe the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity, performance or achievements. You
should not rely upon forward-looking statements as predictions of future events. We are under no
duty to update any of these forward-looking statements after the date hereof.

Overview

We are a blank check company organized under the laws of the State of Delaware on November 2,
2007. We were formed for the purpose of effecting a merger, capital stock exchange, asset
acquisition or other similar business combination with one or more businesses or assets, which we
refer to as our initial business combination. We consummated our initial public offering and a
private placement of warrants on February 21, 2008. We are currently in the process of evaluating
and identifying targets for a business combination. If we are unable to consummate a business
combination by February 14, 2010, our corporate existence will cease.

We intend to utilize cash derived from the proceeds of our initial public offering, our
private placement of warrants, our capital stock, debt or a combination of cash, capital stock and
debt, in effecting a business combination. The issuance of additional shares of our capital stock:



may significantly reduce the equity interest of our stockholders;



will likely cause a change in control if a substantial number of our shares of common
stock are issued, which may affect, among other things, our ability to use our net operating
loss carry forwards, if any, and may also result in the resignation or removal of one or
more of our current executive officers and directors; and



may adversely affect prevailing market prices for our common stock.

Similarly, if we issue debt securities, it could result in:



default and foreclosure on our assets if our operating revenues after a business
combination were insufficient to pay our debt obligations;



acceleration of our obligations to repay the indebtedness even if we have made all
principal and interest payments when due if the debt security contained covenants that
require the maintenance of certain financial ratios or reserves and any such covenant were
breached without a waiver or renegotiation of that covenant;



our immediate payment of all principal and accrued interest, if any, if the debt security
were payable on demand; and

15



our inability to obtain additional financing, if necessary, if the debt security
contained covenants restricting our ability to do so.

Through September, 2008, our efforts have been limited to organizational activities,
activities relating to our initial public offering, activities relating to identifying, evaluating
and selecting a prospective acquisition candidate, and activities relating to general corporate
matters; we have neither engaged in any operations nor generated any revenues, other than interest
income earned on the proceeds of our initial public offering and our private placement. We expect
to incur increased expenses as a result of being a public company (for legal, financial reporting,
accounting and auditing compliance), as well as for due diligence expenses. For the three months
ended September 30, 2008, we earned $1,097,043, which consisted of $1,943,075 of interest income
primarily from the trust account offset by $106,198 of formation, general and administrative costs
and $739,834 of provision for income taxes. For the nine months ended September 30, 2008, we earned
$2,548,339, which consisted of $4,936,297 of interest income primarily from the trust account
offset by $300,195 of formation, general and administrative costs and $2,087,763 of provision for
income taxes.

Business Combination with Iridium Holdings LLC

On September 22, 2008, the Company announced that it had entered in an agreement (the
Transaction Agreement) to acquire Iridium Holdings LLC (Iridium), a leading provider of voice
and data mobile satellite services (the Proposed Business Combination).

Under the terms of the Transaction Agreement, the Company will acquire Iridium in exchange for
36.0 million shares of its common stock and $77.1 million of cash, subject to adjustment. In
addition, 90 days following the closing of the Proposed Business Combination, if Iridium has in effect a valid
election under Section 754 of the Internal Revenue Code of 1986, as amended, the Company will make
a tax benefits payment of up to $30 million in aggregate to certain sellers to compensate for the
tax basis step-up. Upon the closing of the Proposed Business Combination, Iridium will become a subsidiary of the
Company and the combined enterprise will be renamed Iridium Communications Inc. and will apply
for listing on NASDAQ.

The Transaction Agreement and related documents have been unanimously approved by the board of
directors of the Company and Iridium. The closing of the Proposed Business Combination is subject to customary
closing conditions including the expiration or termination of waiting periods under the
Hart-Scott-Rodino Act, Federal Communications Commission approval, other regulatory approvals and
the approval of the Companys stockholders, including a majority of the shares of the Companys
common stock issued in its initial public offering. The Company has been granted early termination
of the Hart-Scott-Rodino Act. In addition, the closing of the Proposed Business Combination is conditioned on the
requirement that stockholders owning not more than 11,999,999 shares of the Companys common stock
(such number representing 30 percent minus one share of the 40,000,000 shares of issued in its
initial public offering) vote against the Proposed Business Combination and validly exercise their conversion rights
to have their shares converted into cash, as permitted by the Companys certificate of
incorporation. The Companys initial stockholders have agreed to vote the 8,500,000 shares they
already own, which were issued to them prior to the Companys initial public offering, in
accordance with the vote of the holders of a majority of the shares issued in the initial public
offering. The Proposed Business Combination is expected to close in the first part of 2009 but may vary depending
upon the timing of regulatory approvals.

If (x) the Transaction Agreement is terminated either by the Company or Iridium because the
Companys stockholders shall have failed to approve the Proposed Business Combination, (y) the Company breaches its
obligations to hold a stockholder meeting or to use its reasonable
best efforts to consummate the Proposed Business Combination contemplated by the Transaction Agreement, and (z) the
Company consummates an initial business combination (other than with Iridium), the Company will be
obligated to pay to Iridium within two business days of the consummation of such other business
combination, a break-up fee consisting of $5,000,000 in cash, shares of the Companys common stock
or combination thereof, at the Companys election (the Termination Fee). The Termination Fee will
be the exclusive remedy of Iridium, the Sellers and their respective affiliates with respect to any
such breach except in the case where, prior to 10 business days immediately following the
termination of the Transaction Agreement, Iridium notifies the Company in writing that it believes
in good faith the Company has committed willful breach of the Transaction Agreement. In that case,
the Company need not pay the Termination Fee and Iridium shall have the right to pursue its
remedies for willful breach against the Company, subject to other limitations set forth in the
Transaction Agreement.

The Company intends to launch a tender offer for its common shares which will close concurrent
with completion of the Proposed Business Combination, pursuant to which shares will be acquired at a price per share
of $10.50, up to an aggregate purchase price of $120 million reduced by the amount of cash
distributed to stockholders who vote against the Proposed Business Combination and elect conversion of their shares.

16

On September 22, 2008, the Company entered into a side letter agreement (the Side Letter)
with Greenhill whereby Greenhill has agreed to forfeit at the closing of
the Proposed Business Combination the following securities of the Company which it currently owns: (1) 1,441,176
common shares; (2) 8,369,563 founder warrants; and (3) 2,000,000 private placement warrants. These
forfeitures will reduce the Companys shares and warrants outstanding immediately post-closing.

We intend to file a preliminary proxy statement with the SEC with respect to the proposed
Business Combination. As of the date of the filing of this Form 10-Q, neither the preliminary proxy
statement nor the definitive proxy statement have been filed with the SEC or disseminated to
shareholders. Investors are urged to review the preliminary proxy statement and definitive proxy
statement, when completed, in its entirety. A more complete
description of the Proposed Business Combination described above, is
included in a Current Report on Form 8-K filed on September 23, 2008.

Critical Accounting Policies

We have identified the following as our critical accounting policies:

Cash and Cash Equivalents
 The Company considers all highly liquid investments with
maturities of three months or less at the date of purchase to be cash equivalents.

Concentration of Credit Risk
 The Company maintains its cash and cash equivalents with a
financial institution with high credit ratings. At times, the Company may maintain deposits in
federally insured financial institutions in excess of federally insured (FDIC) limits. However,
management believes that the Company is not exposed to significant credit risk due to the financial
position of the depository institution in which those deposits are held. The Company does not
believe the cash equivalents held in trust at broker are subject to significant credit risk as the
portfolio is invested in assets, which meet the applicable conditions of 2a-7 of the Investment
Company Act of 1940. The Company has not experienced any losses on this account.

Fair Value of Financial Instruments
 Cash and cash equivalents, investments held in trust at
broker and notes payable are carried at cost, which approximates fair value due to the short-term
nature of these investments.

Use of Estimates
 The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of income and expenses during the reporting period. Actual results could differ materially from
those estimates.

Earnings per Share

The Company calculates earnings per share (EPS) in accordance with
FASB Statement No. 128, Earnings per Share (SFAS 128). Basic and diluted EPS is calculated by
dividing net income by the weighted-average number of shares of common stock outstanding during the
period.

Warrants issued by the Company in the Public Offering and private placement are contingently
exercisable at the later of one year from the date of the offering and the consummation of a
business combination, provided, in each case, there is an effective registration statement covering
the shares issuable upon exercise of the warrants. Hence, these are presented in the proforma
diluted EPS.

Proforma diluted EPS includes the determinants of basic and diluted EPS plus to the extent
dilutive, the incremental number of shares of common stock to settle outstanding common stock
purchase warrants, as calculated using the treasury stock method.

Income Taxes
 The Company complies with the Financial Accounting Standards Board (FASB)
issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation
of FASB Statement No. 109 (FIN 48), which provides criteria for the recognition, measurement,
presentation and disclosure of uncertain tax position. A tax benefit from an uncertain position may
be recognized only if it is more likely than not that the position is sustainable based on its
technical merits. The Company filed its first income tax return on September 15, 2008. Management
does not plan on taking any uncertain tax positions when filing the Companys tax returns
consequently the Company has not recognized any liabilities under FIN 48. The Company will
recognize interest and penalties related to uncertain tax positions as an operating expense in its
condensed statements of income.

Deferred income taxes are provided for the differences between bases of assets and liabilities
for financial reporting and income tax purposes. A valuation allowance is established when
necessary to reduce deferred tax assets to the amount expected to be realized.

Requires consideration of the Companys creditworthiness when valuing liabilities; and



Expands disclosures about instruments measured at fair value.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset
or liability as of the measurement date. A financial instruments categorization within the
valuation hierarchy is based upon the lowest level of input that is significant to the fair value
measurement. The three levels of the valuation hierarchy and the distribution of the Companys
financial assets within it are as follows:



Level 1  inputs to the valuation methodology are quoted prices (unadjusted) for
identical assets or liabilities in active markets.



Level 2  inputs to the valuation methodology include quoted prices for similar assets
and liabilities in active markets, and inputs that are observable for the assets or
liability, either directly or indirectly, for substantially the full term of the financial
instrument.



Level 3  inputs to the valuation methodology are unobservable and significant to the
fair value measurement.

In February 2007, the FASB issued SFAS No. 159, Fair Value Option for Financial Assets and
Financial Liabilities  Including an amendment of FASB Statement No. 115 (SFAS 159). SFAS 159
permits an entity to elect fair value as the initial and subsequent measurement attribute for many
financial assets and liabilities. Entities electing the fair value option would be required to
recognize changes in fair value in earnings. Entities electing the fair value option would be
required to distinguish, on the face of the balance sheet, the fair value of assets and liabilities
for which the fair value option has been elected and similar assets and liabilities measured using
another measurement attribute. SFAS 159 became effective beginning January 1, 2008. The Company
elected not to measure any eligible items using the fair value option in accordance with SFAS No.
159 and therefore, SFAS No. 159 did not have an impact on the Companys condensed balance sheets,
condensed statements of income and condensed statements of cash flows.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (SFAS
141R). SFAS 141R provides revised guidance on how acquirers recognize and measure the
consideration transferred, identifiable assets acquired, liabilities assumed, noncontrolling
interests, and goodwill acquired in a business combination. SFAS 141R also expands required
disclosures surrounding the nature of financial effects of business combinations. SFAS 141R is
effective, on a prospective basis, for companies for fiscal years beginning January 1, 2009. The
Company is currently assessing the potential effect of SFAS 141R on its condensed balance sheets,
condensed statements of income and condensed statements of cash flows.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated
Financial Statements (SFAS 160). SFAS 160 establishes requirements for ownership interests in
subsidiaries held by parties other than the Company (sometimes called minority interests) be
clearly identified, presented, and disclosed in the condensed balance sheet within equity, but
separate from the parents equity. All changes in the parents ownership interests are required to
be accounted for consistently as equity transactions and any noncontrolling equity investments in
deconsolidated subsidiaries must be measured initially at fair value. SFAS 160 is effective, on a
prospective basis, for companies for fiscal years beginning January 2009. However, presentation and
disclosure requirements must be retrospectively applied to comparative financial statements. The
Company is currently assessing the impact of SFAS 160 on its condensed balance sheets and condensed
statements of income.

In April 2008, the FASB issued FSP FAS 142-3, Determination of the Useful Life of Intangible
Assets (FSP FAS 142-3). FSP FAS 142-3 amends the factors that should be considered in developing
a renewal or extension assumptions used for purposes of determining the useful life of a recognized
intangible asset under SFAS No. 142, Goodwill and Other
Intangible Assets (SFAS 142). FSP FAS
142-3 is intended to improve the consistency between the useful life of a recognized intangible
asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the
asset under SFAS 141R and other

18

U.S.
generally accepted accounting principles. FSP FAS 142-3 is effective for fiscal years beginning after
December 15, 2008. Earlier application is not permitted. The Company will be assessing the
potential effect of FSP FAS 142-3 if applicable, once we enter into a business combination.

In October, 2008, the FASB issued FSP FAS 157-3, Determining the Fair Value of a Financial
Asset When the Market for That Asset Is Not Active (FSP FAS 157-3) which provided additional
interpretative guidance on the application of SFAS No. 157 in markets that are not active and
provided an illustrative example to demonstrate how the fair value of a financial asset is
determined when the market for the financial asset is inactive. FSP FAS 157-3 was effective upon
issuance, including for prior periods for which financial statements have not yet been issued. The
issuance of interpretative guidance on the application of SFAS No. 157 did not have a material
impact on the Companys condensed financial statements.

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet financing arrangements and have not established
any special purpose entities. We have not guaranteed any debt or commitments of other entities or
entered into any options on non-financial assets.

Liquidity and Capital Resources

A total of $400,000,000, including $375,648,500 of the net proceeds from the initial public
offering, $8,000,000 from the sale of the private placement warrants to the founding stockholder
and $16,351,500 of deferred underwriting discounts and commissions, was placed in trust. We expect
that most of the proceeds held in the trust account will be used as consideration to pay the
sellers of a target business or businesses with which we ultimately complete our initial business
combination. We expect to use substantially all of the net proceeds of our initial public offering
and private placement that are withdrawn from the trust account to pay expenses in locating and
acquiring a target business, including identifying and evaluating prospective acquisition
candidates, selecting the target business, and structuring, negotiating and consummating our
initial business combination. To the extent that our capital stock or debt financing is used in
whole or in part as consideration to effect our initial business combination, any proceeds held in
the trust account as well as any other net proceeds not expended will be used to finance the
operations of the target business.

Upon the closing of the initial public offering, we had $1,100,000 in funds available to us
outside of the trust account. That amount, together with (i) interest income of up to $5,000,000 on
the balance of the trust account that may be released to us for working capital requirements and
(ii) additional amounts that may be released to fund our tax liabilities, will be sufficient to
allow us to operate through February 14, 2010, assuming that our initial business combination is
not consummated during that time. Over this time period, we anticipate making the following
expenditures:



approximately $240,000 of expenses in fees relating to our office space and certain
general and administrative services;



approximately $4,760,000 for general working capital that will be used for miscellaneous
expenses including expenses for a proposed initial business combination), such as legal,
accounting and other expenses, including due diligence expenses and reimbursement of
out-of-pocket expenses incurred in connection with the investigation, structuring and
negotiation of our initial business combination, director and officer liability insurance
premiums and reserves and expenses of our initial public offering to the extent they
exceeded the estimates, legal and accounting fees relating to SEC reporting obligations,
brokers retainer fees, consulting fees and finders fees; and



approximately 45% of our net income before tax to fund federal, state and local income
taxes.

On September 30, 2008, $402,270,297 was held in trust, of which the Company had the right to
withdraw $2,270,297 to fund working capital needs relating to the proposed business combination and
the payment of income taxes. Since the Public Offering, the Company has withdrawn $2,666,000 in
total from the trust account; $899,000 for working capital purposes and $1,767,000 for the payment
of federal, state and local income taxes.

The Company has remaining authority to withdraw $4,101,000 of total earnings from the trust
account for working capital purposes and to consummate the purchase of our initial business. The
Company is entitled to make additional withdrawals from earnings to the extent necessary, for the
payment of federal, state and local income taxes.

We do not believe we will need additional financing following our initial public offering to
meet the expenditures required for operating our business before our initial business combination.
However, we will rely on interest earned on the trust account to fund

19

such expenditures and, to the extent that the interest earned is below our expectation, we may
have insufficient funds available to operate our business before our initial business combination.

Moreover, we may need to obtain additional financing either to consummate our initial business
combination or because we become obligated to convert into cash a significant number of shares of
public stockholders voting against our initial business combination, in which case we may issue
additional securities or incur debt in connection with such business combination. Following our
initial business combination, if cash on hand is insufficient, we may need to obtain additional
financing to meet our obligations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is a broad term for the risk of economic loss due to adverse changes in the fair
value of a financial instrument. These changes may be the result of various factors, including
interest rates, foreign exchange rates, commodity prices and/or equity prices. The net proceeds of
our initial public offering and the private placement in the trust account have been invested in
various money market funds, which themselves invest principally in short-term securities issued or
guaranteed by the United States having the highest rating from a recognized credit rating agency or
otherwise meeting the conditions under Rule 2a-7 under the Investment Company Act. Thus, we are
currently subject to market risk primarily through the effect of changes in interest rates on
short-term government securities and other highly rated money-market instruments. We do not believe
that the effect of other changes, such as foreign exchange rates, commodity prices and/or equity
prices currently pose significant market risk for us. Due to the short-term nature of these
investments, we believe there will be no associated material exposure to interest rate risk.

We have not engaged in any hedging activities since our inception. We do not currently expect
to engage in any hedging activities.

Item 4. Controls and Procedures

We will be required to comply with the internal control requirements of the Sarbanes-Oxley Act
for the fiscal year ending December 31, 2009. As of September 30, 2008, we had not completed an
assessment nor have our auditors tested our systems of internal control over financial reporting.
We expect to assess the internal controls of our target business or businesses by the compliance
date and, if necessary, to implement and test additional controls as we may determine are necessary
to state that we maintain an effective system of internal controls. A target business may not be in
compliance with the provisions of the Sarbanes-Oxley Act regarding the adequacy of internal
controls. Many small and mid-sized target businesses we may consider for a business combination may
have internal controls that need improvement in areas such as:



staffing for financial, accounting and external reporting areas, including segregation of
duties;



reconciliation of accounts;



proper recording of expenses and liabilities in the period to which they relate;



evidence of internal review and approval of accounting transactions;



documentation of processes, assumptions and conclusions underlying significant estimates;
and



documentation of accounting policies and procedures.

Because it will take time, management involvement and perhaps outside resources to determine
what internal control improvements are necessary for us to meet regulatory requirements and market
expectations for our operation of a target business, we may incur significant expense in meeting
our public reporting responsibilities, particularly in the areas of designing, enhancing, or
remediating internal and disclosure controls. Doing so effectively may also take longer than we
expect, thus increasing our exposure to financial fraud or erroneous financing reporting.

Once our managements report on internal controls is complete, we will retain our independent
auditors to audit and render an opinion on such report when required by Section 404. The
independent auditors may identify additional issues concerning a target businesss internal
controls while performing their audit of internal control over financial reporting.

20

Part II. Other Information

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in our Annual
Report on Form 10-K for the year ended December 31, 2007. Investors should consider the risks
disclosed therein.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On November 13, 2007, Greenhill purchased 11,500,000 units (each one consisting of one share
of common stock and one warrant to purchase one share of common stock) for a purchase price of
$25,000 at a purchase price of $0.003 per unit. On January 10, 2008, we cancelled 1,725,000 units,
which were surrendered by Greenhill in a recapitalization, leaving Greenhill with a total of
9,775,000 units (of which 1,275,000 were subject to forfeiture). This sale was deemed to be exempt
from registration under the Securities Act of 1933 in reliance on Section 4(2) of the Securities
Act as a transaction by an issuer not involving a public offering. In the transaction, the
purchaser represented its intention to acquire the securities for investment only and not with a
view to or for sale in connection with any distribution thereof and appropriate legends were
affixed to the instruments representing the securities issued in the transaction.

On February 21, 2008, we also closed the private placement of 8,000,000 warrants with
Greenhill for total proceeds of $8,000,000. This sale of warrants was also deemed to be exempt from
registration under the Securities Act of 1933 in reliance on Section 4(2) of the Securities Act as
a transaction by an issuer not involving a public offering. In the transaction, each of the
aforementioned purchasers represented its intention to acquire the securities for investment only
and not with a view to or for sale in connection with any distribution thereof and appropriate
legends were affixed to the instruments representing the securities issued in the transaction.

On March 27, 2008, following the expiration of the over-allotment option of the underwriters
of our initial public offering, 1,275,000 founders units were forfeited pursuant to the terms of
the applicable purchase agreement in order to maintain our initial stockholders approximately
17.5% ownership interest in our common stock after giving effect to the initial public offering.

As of September 30, 2008, we incurred an aggregate of approximately $1,163,239 in offering
related expenses (excluding underwriters discount and commissions), which have been or will be paid
from the $1,100,000 of the proceeds of our initial public offering not held in trust and our
withdrawal of a portion of interest earned on the funds held in trust. Up to $5,000,000 of interest
earned on the funds held in trust may be released to us for the following purposes:

expenses for due diligence and investigation of prospective target businesses;



legal, accounting and printing fees relating to our SEC reporting obligations and general
corporate matters; and



miscellaneous expenses.

In addition, we may use interest earned on the funds held in trust to pay federal, state and
local income taxes.

As of September 30, 2008, approximately $402,270,297 was held in a trust account. On April 25,
2008. the Company withdrew $200,000 from the trust account for working capital. On June 9, 2008,
the Company withdrew $1,266,000 from the trust account for the payment of estimated federal, state
and local income taxes for the first quarter of 2008. On September 9, 2008, the Company withdrew
another $1,200,000 from the trust account; of which $501,000 was used for the payment of estimated
federal, state and local income taxes for the second quarter of 2008 and the remaining $699,000 for
working capital.

We intend to use up to $5,000,000 of total earnings from the trust account, of which
$4,101,000 remain for working capital purposes and to consummate our initial business combination
as described in more detail under Part I, Item 2, Managements

21

Discussion and Analysis of Financial Condition and Results of Operations  Liquidity and
Capital Resources. The Company is entitled to make additional withdrawals from earnings to the
extent necessary, for the payment of federal, state and local income taxes.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

22

Item 6. Exhibits

Exhibit

Number

Description

2.1*

Transaction Agreement, dated September 22, 2008

2.2*

Side Letter, dated September 22, 2008

3.2**

Form of Amended and Restated Bylaws

3.3**

Form of Amended and Restated Certificate of Incorporation

4.1**

Specimen Unit Certificate

4.2**

Specimen Common Stock Certificate

4.3***

Amended and Restated Warrant Agreement between the Registrant and American Stock Transfer & Trust Company

4.4**

Specimen Warrant Certificate

10.1**

Form of Letter Agreement among the Registrant and Greenhill & Co., Inc.

10.2**

Form of Letter Agreement between the Registrant and each of the directors and officers of the Registrant

10.3**

Founders Securities Purchase Agreement, dated as of November 12, 2007, between the Registrant and
Greenhill & Co., Inc.

10.4**

Form of Registration Rights Agreement between the Registrant, certain members of management of Greenhill
& Co., Inc. and Greenhill & Co., Inc.

10.5**

Form of Indemnity Agreement between the Registrant and each of its directors and officers

10.6***

Investment Management Trust Agreement by and between the Registrant and American Stock Transfer & Trust
Company

10.7**

Securities Purchase Agreement, dated as of February 4, 2008, between Greenhill & Co., Inc. and Messrs.
Canfield, Clarke and Rush

10.8**

Promissory Note issued by Registrant on November 19, 2007

10.9**

Form of Non-Compete Agreement between the Registrant, its executive officers and Greenhill & Co., Inc.

Unit Cancellation Agreement and Amendment to Founders Securities Purchase Agreement, dated as of
January 10, 2008, between the Registrant and Greenhill & Co., Inc.

31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities
Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities
Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

*

Incorporated by reference to Exhibits 1.01 and 1.02 of the Registrants current report on Form 8-K
filed on September 25, 2008.

**

Incorporated by reference to the Registrants Registration Statement on Form S-1 (Registration No.
333-147722), which was declared effective on February 14, 2008.

***

Incorporated by reference to the Registrants current report on Form 8-K filed on February 26, 2008.

23

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 14, 2008

GHL ACQUISITION CORP.

By:

/s/
SCOTT L. BOK

Name:

Scott L. Bok

Title:

Chairman and Chief Executive Officer

By:

/s/
HAROLD J. RODRIGUEZ, JR.

Name:

Harold J. Rodriguez, Jr.

Title:

Chief Financial Officer

S-1

EXHIBIT 31.1

I, Scott L. Bok, certify that:

1.

I have reviewed this quarterly report on Form 10-Q of GHL Acquisition Corp.;

2.

Based on my knowledge, this quarterly report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the
period covered by this quarterly report;

3.

Based on my knowledge, the financial statements, and other financial information included in
this quarterly report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods presented
in this quarterly report;

4.

The registrants other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and we have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this quarterly report is being prepared;

b) [reserved];

c) evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this quarterly report based on such
evaluation; and

d) disclosed in this quarterly report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the registrants internal
control over financial reporting; and

5.

The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of registrants board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.

Date: November 14, 2008

/s/
SCOTT L. BOK

Scott L. Bok
Chairman and Chief Executive Officer

E-1

EXHIBIT 31.2

I, Harold J. Rodriguez, Jr., certify that:

1.

I have reviewed this quarterly report on Form 10-Q of GHL Acquisition Corp.;

2.

Based on my knowledge, this quarterly report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the
period covered by this quarterly report;

3.

Based on my knowledge, the financial statements, and other financial information included in
this quarterly report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods presented
in this quarterly report;

4.

The registrants other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and we have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this quarterly report is being prepared;

b) [reserved];

c) evaluated the effectiveness of the registrants disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures, as of the end of the period covered by this quarterly report based on such
evaluation; and

d) disclosed in this quarterly report any change in the registrants internal control over
financial reporting that occurred during the registrants most recent fiscal quarter that has
materially affected, or is reasonably likely to materially affect, the registrants internal
control over financial reporting; and

5.

The registrants other certifying officer and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrants auditors and the
audit committee of registrants board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a
significant role in the registrants internal control over financial reporting.

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002,
PURSUANT TO SECTION 1350 OF CHAPTER 63 OF TITLE 18 OF THE UNITED STATES CODE

I, Scott L. Bok, Chairman and Chief Executive Officer of GHL Acquisition Corp. (the
Company), certify that, to the best of my knowledge:

(1)

the report of the Company on Form 10-Q for the quarterly period ending September 30, 2008
(the Report) fully complies with the requirements of Section 15(d) of the Securities
Exchange Act of 1934; and

(2)

the information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company as of the dates and for the
periods presented in the Report.

/s/ SCOTT L. BOK

Scott L. Bok
Chairman and Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to GHL
Acquisition Corp. and will be retained by GHL Acquisition Corp. and furnished to the Securities and
Exchange Commission or its staff upon request.

the report of the Company on Form 10-Q for the quarterly period ending September 30, 2008
(the Report) fully complies with the requirements of section 15(d) of the Securities
Exchange Act of 1934; and

(2)

the information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company as of the dates and for the
periods presented in the Report.

/s/ HAROLD J. RODRIGUEZ, JR.

Harold J. Rodriguez, Jr.
Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to GHL
Acquisition Corp. and will be retained by GHL Acquisition Corp. and furnished to the Securities and
Exchange Commission or its staff upon request.